Publication: The Economic Cost of Exclusion Based on Sexual Orientation, Gender Identity and Expression, and Sex Characteristics in the Labor Market in the Republic of Serbia
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2023-09-26
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2023-09-21
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Recent research suggests that the effects of stigma, discrimination, and exclusion against lesbian, gay, bisexual, transgender, and intersex (LGBTI) people could be costing economies billions of dollars. There are numerous reasons for these costs, including adverse educational environments, employment discrimination, physical and mental health disparities, and violence. This research aims to estimate the economic cost of exclusion based on sexual orientation, gender identity and expression, and sex characteristics (SOGIESC) in the Republic of Serbia and to provide the country’s policy makers, civil society, and development partners with new evidence on the ongoing policy dialogue on strengthening the social inclusion of lesbian, gay, bisexual, transgender, and intersex (LGBTI) people. To estimate the cost of exclusion, this report presents two theoretical models focused on the labor market and related issues. The first model centers mainly on the accumulated loss of individual wages due to the consequences of exclusion. The second model calculates the negative effect of exclusion on accumulated fiscal revenues (due to lower income and payroll taxes) and expenditures (due to higher expenditures for unemployment benefits and active labor market programs).
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“Flores, Andrew; Koehler, Dominik; Lucchetti, Leonardo; Cortez, Clifton; Djindjić, Jovana; Kuzmanov, Lidija. 2023. The Economic Cost of Exclusion Based on Sexual Orientation, Gender Identity and Expression, and Sex Characteristics in the Labor Market in the Republic of Serbia. © World Bank. http://hdl.handle.net/10986/40379 License: CC BY 3.0 IGO.”
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Publication The Economic Cost of Exclusion Based on Sexual Orientation, Gender Identity and Expression, and Sex Characteristics in the Labor Market in the Republic of North Macedonia(Washington, DC: World Bank, 2023-09-26)Recent research suggests that the effects of stigma, discrimination, and exclusion against lesbian, gay, bisexual, transgender, and intersex (LGBTI) people could be costing economies billions of dollars. There are numerous reasons for these costs, including adverse educational environments, employment discrimination, physical and mental health disparities, and violence. This research aims to estimate the economic cost of exclusion based on sexual orientation, gender identity and expression, and sex characteristics (SOGIESC) in the Republic of North Macedonia and to provide the country’s policy makers, civil society, and development partners with new evidence on the ongoing policy dialogue on strengthening the social inclusion of lesbian, gay, bisexual, transgender, and intersex (LGBTI) people. To estimate the cost of exclusion, this report presents two theoretical models focused on the labor market and related issues. The first model centers mainly on the accumulated loss of individual wages due to the consequences of exclusion. The second model calculates the negative effect of exclusion on accumulated fiscal revenues (due to lower income and payroll taxes) and expenditures (due to higher expenditures for unemployment benefits and active labor market programs).Publication Sexual Orientation and Gender Identity (SOGI) Inclusion and Gender Equality(World Bank, Washington, DC, 2023-08)This note provides an overview of the situation of LGBTI people globally and why addressing discrimination against them and promoting their inclusion make economic sense as well as being the right thing to do. It lays out the authorizing environment for SOGI inclusion at the World Bank and highlights promising practices of SOGI inclusion, including in data generation and operations from the World Bank and public and private sector partners. 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A conceptual model links exclusion of LGBT people and economic development through (1) lower productivity and lower output as a result of employment discrimination and constraints on labor supply; (2) inefficient investment in human capital because of lower returns to education and discrimination in educational settings; (3) lost output as a result of health disparities that are linked to exclusion; and (4) social and health services required to address the effects of exclusion that might be better spent elsewhere. Third and lastly, in India, existing research does not allow for a precise estimate of the cost of LGBT exclusion, but the cost could be substantial. The loss of labor productivity and output because of employment discrimination and the loss of life years due to early death or disability will reduce the economic output of the Indian economy. 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It also seeks to influence legislative changes and support research on institutions and regulations that can ultimately lead to poverty reduction and shared prosperity. At the same time, it acknowledges that the mere existence of inclusive laws and regulations does not ensure that sexual and gender minorities are free from discrimination—the enforcement of those laws is crucial. This publication, the first in a series of studies, will be expanded from the 16 countries included to a wider set of countries for more in-depth quantitative analysis and to identify possible correlations with socioeconomic outcomes. It will seek to deepen knowledge, facilitate peer learning of good practices, and encourage reforms to increase the inclusion of sexual and gender minorities.Publication Discrimination Against Sexual Minorities in Education and Housing(World Bank, Washington, DC, 2018-06)Discrimination against lesbian, gay, bisexual, transgender, and intersex (LGBTI) people is widespread, and LGBTI exclusion from economic markets, vital services, and political spaces is entrenched. This is not just an individual problem; it is a development challenge; not only because discrimination is inherently unjust, but also because “there are substantial costs -- social, political, and economic -- to not addressing the exclusion of entire groups of people.” Understanding the barriers LGBTI people face in accessing markets, services, and spaces is important for designing more inclusive policies and programs. This study documents, for the first time, discrimination against LGBTI people in access to education and housing in Serbia, using evidence from field experiments. In Serbia, "feminine boys," widely perceived as being gay, were at least three times more likely to be refused enrollment in primary schools (15 percent) compared to boys not perceived to be feminine (5 percent). Eighteen percent of same-sex couples were refused apartment rentals by private landlords, while no heterosexual couples were. The research contributes to the growing body of evidence on the economic dimensions of LGBTI discrimination.
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